Bank of Jerusalem

Bank of Jerusalem is an Israeli banking institution headquartered in Jerusalem and operating through a nationwide branch network. It began in 1963 as a specialized mortgage bank created to support housing development and broader economic activity in Jerusalem. The founding group included businessman Mordechai Meir, industrialists Charles Clore and Isaac Wolfson, and the Municipality of Jerusalem. The institution was initially licensed as Bank Yerushalayim for Development and Mortgages Ltd., reflecting its original role in financing residential construction rather than providing the full range of services associated with a universal commercial bank. During its early decades, the bank concentrated on residential development in Jerusalem. Its lending supported major construction activity, including projects associated with Kiryat Wolfson and the Ramat Sharet neighborhood. Ownership gradually consolidated around the Meir family. In 1989, the Meir brothers divided their business interests, with Moshe Meir taking control of the bank and appointing Zalman Shoval, his son-in-law, as chairman. Following Moshe Meir's death in 1993, control passed to Zalman and Kna Shoval. The bank remains controlled through Export Investment Corp. Ltd., a public company associated with the Shoval family. Bank of Jerusalem became a public company through an initial public offering on the Tel Aviv Stock Exchange in 1992. It subsequently expanded its regulatory and commercial scope. In 1997 it received a financial-institution license under Israel's banking legislation, permitting a broad range of activities but excluding payment of checks on demand. In August 1998, it received a commercial banking license from the Bank of Israel. This change marked its transition from a narrowly specialized mortgage institution into a commercial bank active in real-estate finance, capital-market services, savings, loans and other banking activities. The bank broadened its consumer offering in the 2000s. In 2002 it began issuing credit cards through a partnership with Credit Cards Israel. From 2010 onward, its stated strategy emphasized controlled growth, with mortgages and specialized commercial activity remaining central while consumer credit and retail banking were developed further. Its retail services included current accounts and savings products. The bank also invested in operating infrastructure, including information systems, cybersecurity, customer relationship management, call-center capabilities, digital archiving, an upgraded website and multifunction ATMs capable of cash and check deposits. In response to public debate and social protests in 2011, Bank of Jerusalem changed its deposit-interest policy to pass a substantially larger share of the Bank of Israel's interest rate to depositors. The bank described the policy as a shift from a minimum approach to a maximum approach. It later moderated the arrangement, reducing the customer share during the second half of 2013. The episode reflected the bank's effort to differentiate its retail proposition in a competitive Israeli banking market. The institution also pursued adjacent capital-market activities. In 2013 it acquired General Finance-Assuta Investment Management Company, expanding its presence in local investment management and capital-market services. That business was sold to Meitav Dash approximately four years later. In 2017, the bank introduced a prepaid debit-card service aimed particularly at workers who lacked conventional bank accounts and received wages in cash. In 2018, it sought to acquire Municipal Bank, then owned by the Dexia banking group, but the proposal was rejected in favor of an offer from Israel Discount Bank. Bank of Jerusalem's public profile has also been affected by criticism concerning its activities connected with Israeli settlements. In February 2020, the United Nations published a database identifying companies involved in business linked to Israeli settlements in the We…

The origins of Bank of Jerusalem lie in efforts during the late 1950s to establish a Jerusalem-based bank capable of financing local economic development. At the same time, the Jerusalem Workers' Loan and Savings Fund was seeking a banking role. The Bank of Israel was initially reluctant to authorize new banks, but in 1963 it approved the creation of a mortgage institution in Jerusalem. The new bank was founded by Mordechai Meir, Charles Clore, Isaac Wolfson and the Municipality of Jerusalem, and received its license in December 1963 under the name Bank Yerushalayim for Development and Mortgages Ltd. Mordechai Ish-Shalom, then Jerusalem's mayor, became its first president. The bank's initial business was concentrated on mortgages and financing for residential construction. It supported development in Jerusalem, including Kiryat Wolfson and Ramat Sharet. Its early shareholders included Wolfson-Klor Corporation, a government housing and development company, Export Investment Company, the Jerusalem Loan and Savings Bank, the Municipality of Jerusalem and the Workers' Union. Isaac Wolfson served as chairman, with Charles Clore and Moshe Meir as deputies. Ownership later moved toward the Meir family. The Meir brothers accumulated a majority through their interests in Wolfson-Klor Meir Corporation and Export Investment Company. In 1989, they separated their business interests and Moshe Meir assumed control of the bank. He appointed his son-in-law Zalman Shoval as chairman, a choice that attracted criticism because Shoval was also serving as a member of the Knesset. After Moshe Meir died in 1993, control passed to Zalman and Kna Shoval. A major institutional change occurred in the 1990s. The bank completed an initial public offering on the Tel Aviv Stock Exchange in 1992. It received a financial-institution license in 1997 and a commercial banking license from the Bank of Israel in August 1998. These approvals allowed it to move beyond its original mortgage-bank role and develop a broader commercial platform covering real-estate finance, loans, savings, capital-market activities and international banking. In 2002, the bank began issuing credit cards in cooperation with Credit Cards Israel. From 2010, management pursued a controlled-growth strategy centered on mortgages and specialized commercial banking, while expanding consumer credit and retail deposits without abandoning a relatively conservative risk profile. Technology and operating investments included upgraded computer systems, cyber protection, a call center, digital archives, customer relationship management, a redesigned website and multifunction ATMs across the branch network. The bank altered its deposit-interest policy after Israel's 2011 social protests. It temporarily offered depositors a much larger share of the Bank of Israel's interest rate than the prevailing approach at other banks, describing the change as a move from a minimum to a maximum method. It subsequently reduced the customer share during the second half of 2013. Also in 2013, it acquired General Finance-Assuta Investment Management Company, thereby increasing its capital-market presence. That activity was sold to Meitav Dash about four years later. Bank of Jerusalem continued to develop payment and inclusion-oriented services. In 2017, it launched a prepaid debit-card service aimed mainly at employees without bank accounts who were paid in cash. In 2018, it attempted to acquire Municipal Bank from Dexia, but Israel Discount Bank's competing offer was selected. In 2020, the United Nations included Bank of Jerusalem in a database concerning companies conducting business related to Israeli settlements in territories occupied by Israel. The listing generated criticism and placed the bank within a broader debate about corporate involvement in settlement-related economic activity. Bank of Jerusalem remains an active Israeli commercial bank whose historical specialization in housing and real estate continues to shape its market identity.

1. 2020Included in United Nations settlement-business database

   The United Nations listed the bank in a database concerning companies linked to business activities in Israeli settlements and occupied territories.

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2. 2018Municipal Bank acquisition bid rejected

   The bank sought to acquire Municipal Bank from Dexia, but the transaction was awarded to Israel Discount Bank instead.

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3. 2017Prepaid debit-card service launched

   The bank introduced a prepaid debit-card service aimed primarily at workers without conventional bank accounts who received wages in cash.

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4. 2013Investment-management acquisition

   Bank of Jerusalem acquired General Finance-Assuta Investment Management Company, expanding its capital-market activities.

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5. 2011Deposit-interest policy changed

   Following Israeli social protests, the bank adopted a policy designed to pass a substantially larger share of the central-bank interest rate to depositors.

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6. 2010Controlled-growth strategy and infrastructure investment

   The board adopted a strategy emphasizing mortgages, specialized commercial activity, consumer credit, customer diversification and upgrades to digital, branch and cybersecurity infrastructure.

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7. 2002Credit-card issuance begins

   The bank began issuing credit cards through a partnership with Credit Cards Israel.

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8. 1998Commercial banking license granted

   The Bank of Israel granted a commercial banking license, enabling the institution to broaden its lending, savings and commercial banking activities.

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9. 1997Financial-institution license granted

   The bank received a financial-institution license under Israel's banking legislation.

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10. 1992Initial public offering

    Bank of Jerusalem completed an initial public offering on the Tel Aviv Stock Exchange.

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11. 1963Bank founded as a mortgage institution

    The institution was established in Jerusalem and licensed in December as Bank Yerushalayim for Development and Mortgages Ltd., with a mandate focused on housing and local development finance.

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A Jerusalem-rooted Israeli commercial bank differentiated by its historical mortgage and real-estate expertise, controlled growth model and expansion into retail banking and consumer financial services.

• Residential mortgagesMortgage banking1963

  Mortgage lending is the bank's historical core. The institution was created to finance residential construction and housing development in Jerusalem and later retained mortgages as a central component of its commercial-banking strategy.

• Retail banking accounts and depositsRetail banking2010

  The bank offers consumer-oriented current accounts, savings products and deposits. Retail banking became a stronger strategic focus from 2010, alongside efforts to differentiate the bank's deposit proposition through interest-rate policy.

• Consumer and commercial creditLending

  Beyond mortgages, Bank of Jerusalem developed consumer loans and specialized commercial lending. Its stated approach has emphasized controlled expansion and a relatively low-risk mix of activities.

• Credit cardsPayment cards2002

  The bank began issuing credit cards in 2002 through a partnership with Credit Cards Israel, extending its relationship with retail customers beyond deposit and lending products.

• Prepaid debit cardPayment cards2017

  Introduced in 2017, the prepaid card was designed especially for employees without bank accounts who traditionally received their monthly wages in cash.

• 2018Attempted acquisition of Municipal BankM&A

  Municipal Bank was owned by the Belgian-French banking and finance group Dexia.

  What changed. Bank of Jerusalem submitted an acquisition proposal.

  Aftermath. The proposal was rejected and Municipal Bank was acquired through a competing offer from Israel Discount Bank.

  • Israel Discount Bank — Israel Discount Bank submitted the competing offer that was selected.
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• 2017Launch of prepaid debit-card serviceProduct launch

  Some employees lacked conventional bank accounts and received their salaries in cash.

  What changed. The bank launched a prepaid debit card intended to provide a card-based channel for receiving and using wages.

  Aftermath. The service broadened the bank's payment offering and addressed a financially underserved customer group.

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• 2013Acquisition of General Finance-Assuta Investment Management CompanyM&A

  The bank sought to increase its presence in Israel's capital-market and investment-management sectors.

  What changed. Bank of Jerusalem acquired General Finance-Assuta Investment Management Company.

  Aftermath. The acquired activity was sold to Meitav Dash approximately four years later.

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• 2011Deposit-rate policy shifted toward higher customer pass-throughStrategy

  The decision followed Israeli social protests and public criticism of banking practices.

  What changed. Bank of Jerusalem offered depositors a substantially larger share of the Bank of Israel's interest rate than the prevailing approach described in the source material.

  Aftermath. The bank reduced the customer share during the second half of 2013, moving away from the most generous version of the policy.

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• 2010Adoption of a controlled-growth banking strategyStrategy

  The bank sought to expand beyond its mortgage heritage while maintaining a conservative risk profile.

  What changed. Management prioritized specialized mortgage and commercial activity, developed consumer credit and retail banking, diversified customers and revenue sources, and invested in technology and cybersecurity.

  Aftermath. The strategy supported broader retail and digital capabilities while preserving mortgages and real-estate finance as important areas of specialization.

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• 2020Inclusion in United Nations database on settlement-linked businessControversy

  The United Nations included Bank of Jerusalem in a database of companies conducting business related to Israeli settlements in the West Bank, including East Jerusalem, and the occupied Golan Heights. The inclusion prompted criticism concerning the bank's relationship to settlement-related activity and formed part of a wider international debate over corporate conduct in occupied territories.

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1. Bank of Jerusalem
2. Bank of Jerusalem official website